Industry Insights

The global computer numerical control machines market size was valued at USD 63.16 billion in 2018 and is expected to expand at a CAGR of 7.0% from 2019 to 2025. Rapid advancements in production technology have led to a reduction in the time required for manufacturing components along with the ability to produce components with better surface finish. This is anticipated to drive the demand for CNC machines.

Advent of Internet of Things (IoT) and machine learning technology has resulted in the introduction of new features such as an application that notifies the status of a machine to the operators/supervisors on their smartphones or PCs. Various government initiatives for instance, the ‘Make in India’ initiative by the Indian government, and ‘Made In China 2025’ initiative by Chinese government, support the establishment of manufacturing units in their respective nations.

Manufacturers are introducing new variants that perform multiple operations such as drilling, cutting, turning, facing, and grinding among others. These features increase flexibility for attendants and reduce the need for manpower at the shop floor. The new machine models are compact and require lesser floor space as compared to the conventional machinery. However, reducing the costs associated with maintenance of these products is the key challenge for the manufacturers.

CNC machines are used in automotive, aerospace and defense, power and energy, construction equipment, industrial, and several other large-scale manufacturing plants. Increasing expenses of employing operators for individual machinery are expected to further fuel the demand for automated CNC machines over the forecast period.

However, the costs associated with purchasing and installation of the products are high, which subsequently deters small manufacturing companies from investing in CNC machines. Proper training and skills are required to operate the CNC machines and for the machinist to perform the desired tasks.

Type Insights

On the basis of type, the computer numerical control (CNC) machines market is segmented into lathe, milling, laser, grinding, welding, and winding among others. The CNC lathe machines segment led the product segment in 2018 and was valued at USD 17.65 billion. It is expected to maintain its dominance over the forecast period, attributed to increasing availability of multi-axis variants. The recent variants include5-axis and 6-axis lathes that perform operations from both ends and can be used for producing fine cuts and providing a better finish. Benefits such as ease of operation and their myriad applications are resulting in their increased adoption across the globe.

Milling machines segment is expected to grow rapidly over the forecast period owing to the reduced operational costs. The CNC laser machines are expected to gain traction over the forecast period as a result of improved speed of machining and reduced requirement of workforce.

End Use Insights

On the basis of end use, the computer numerical control market is segmented into automotive, aerospace and defense, construction equipment, power and energy, industrial, and others. Increasing demand from the automotive, industrial, and power & energy sectors is anticipated to fuel the growth. Rising demand for mass production of workpieces, from the automobile manufacturers, at minimal time and expenses is expected to accelerate the product demand over the forecast period.

Various complex machinery used in the power and energy and aerospace and defense sectors include components that require higher levels of precision and good quality of surface finish. Many companies are increasingly adopting CNC technology for obtaining the desired results, achieving higher levels of accuracy, and reducing costs involved in wastage of material.

Regional Insights

Asia Pacific led the computer numerical control machines market in terms of market share and CAGR in 2018, owing to the increased adoption of the product in countries such as India, China, and Japan. The major manufacturers such as Okuma Corporation, Yamazaki Mazak Corporation, and DMG Mori Co., Ltd. are based in these countries. Thus, Asia Pacific is expected to continue being the market leader over the next six years.

The growth of Asia Pacific region can also be attributed to increasing government initiatives for supporting the machine tools industry. The market was valued at USD 22.33 billion in 2018 and is anticipated to witness significant growth during the forecast period. The presence of vast base of automotive industries in Europe, is expected to significantly drive the regional market growth.

Several industry players are adopting different strategic initiatives such as mergers and acquisitions, partnerships, and collaborations for technologies and new product developments. For instance, in 2016, Fanuc Corporation collaborated with Cisco (a player in digitization market), Rockwell Automation (a player in industrial automation market), and Preferred Networks (a player in Artificial Intelligence solutions market) for the development and deployment of the FIELD system.

The FIELD system platform connected CNCs, robots, and peripheral devices and sensors to provide analytics for optimization of manufacturing processes. Such initiatives are anticipated to drive the growth over the next six years.

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Segments Covered in the Report

This report forecasts revenue growth at the global, regional, and country levels and provides an analysis of the latest industry trends in each of the sub-segments from 2014 to 2025. For the purpose of this study, Grand View Research has segmented the global computer numerical control machines market report based on type, end use, and region: